Investments & Financial Planning

A Hedge fund is a very specialized, Volatile investment company mutual fund that permits the manager to use a variety of investment strategies and techniques that are normally prohibited in other types of funds.
Generally, these techniques are borrowing money, selling short and utilizing options. These funds offer extraordinary gains with extraordinary above average risk.

An Initial Public Offering (IPO) is the first sale of a corporation's stock to the investing public.

The amount of money in the economy is sometimes referred to as the M1 M2 M3 indicators. M1 is a measure of domestic money supply accounting for currency, checking account balances and traveler's checks.
M2 is a measure of domestic money supply accounting for M1 plus savings and time deposits, repurchase agreements and money market accounts.
M3 is a measure of money supply that includes M2 plus large time deposits and money market fund balances held by institutions.

The Required minimum distribution is the amount you are required to withdraw from your tax-deferred retirement savings accounts after you turn 70 and a half. You must take your first minimum distribution by April 1 of the calendar year following the year in which you turn 70 and a half. You must take your second distribution by December 31 of that same year, and subsequent distributions each year by December 31. If you do not make these withdrawals, you will have to pay a 50 percent penalty tax. There is an exception in the case of a 401(k)retirement plan if you are still working for the company sponsoring the plan, and if you own less than 5% of the company. Your distribution amount is determined by your life expectancy using an IRS-approved mortality table and the amount of money you have in your account, a interest rate and, in certain cases, the life expectancy of your beneficiary. There are several IRS-approved methods for calculating the Required minimum distribution. Speak to your local CPA about the different methods.

A Self directed 401(k) retirement plan is an investment option offered by some 401(k) plans that allows the plan participant to invest 401(k) money in mutual funds, individual stocks and or bonds that are not included in the plan.
Plans typically include a set number of mutual funds for their participants, and the window account allows individual investors more flexibility with their investment portfolio.
These accounts charge an annual maintenance fee as well as trading commissions which are known as a brokerage window account.

Decimalization is the conversion of all U.S. stocks and options pricing, quoting, trading and reporting from fractional to decimal pricing. Prices for stocks and options will be stated in dollars and cents ($50.25) rather than in dollars and fractions ($50 1/4).

The U.S. (SEC)Securities and Exchange Commission is requiring that all major U.S. Stock and Options Exchanges, as well as Nasdaq, change from fractional pricing to decimal pricing. U.S. brokerage firms will therefore be required to use decimal pricing. Decimalization pricing is expected to be beneficial for individual investors. Pricing is more easily understood in dollars and cents, which may encourage more people to buy and sell stocks and options. Decimalization pricing may also achieve savings for investors to the extent that it provides an opportunity to buy and sell stocks and options in smaller price increments per share.

The U.S. stock and options markets are the only major markets still trading in fractions. The conversion to decimal pricing is intended to make the U.S. markets more compatible with other related markets. This conversion will make the U.S. markets more competitive with foreign markets, which already price, quote and trade in decimals.

No mixed pricing will be allowed for a single stock or option. During the phase-in period, a select group of stocks and options will be priced in decimals, while all others will be priced in fractions. Once the phase-in is fully implemented, pricing, quoting and trading will only be done in decimals. An exception to this rule is the exercise price for options. They will remain in fractions during the phase-in period. Option premiums will be expressed decimally in dollars and cents.